The Matched MediSave Scheme is an initiative by the Singapore government to encourage citizens to boost their MediSave savings. However, with upcoming changes in 2025, CPF top-up tax relief rules will be affected. Here’s everything you need to know to optimise your contributions and maximise your tax savings.
Become Our Featured Tax Expert.
This premium ad space is reserved for one tax professional. Put your firm in the spotlight and reach qualified Singapore leads directly.
To claim this exclusive spot, contact us at [email protected].
🏦 1. What is the Matched MediSave Scheme?
The Matched MediSave Scheme allows eligible Singaporeans to receive a dollar-for-dollar government match when they make voluntary contributions to their MediSave Account (MA). This encourages proactive healthcare savings and supports long-term medical needs.
For example, if you top up S$300 to your MediSave, the government will also contribute S$300, up to the matching cap set for the year.
📜 2. Current CPF Top-Up Relief Rules
Under current rules, voluntary top-ups to your Special Account (SA) or MediSave Account (MA) may qualify for tax relief of up to S$8,000 for self and an additional S$8,000 for family members.
- Relief is available for cash top-ups made during the year.
- The top-up amount is capped based on the annual limit and account ceilings.
- Top-ups to MediSave that also qualify for government matching may be included in relief calculations.
⚠️ 3. What Will Change in 2025?
Starting from 1 January 2025, top-ups that qualify for the Matched MediSave Scheme will no longer be eligible for CPF top-up tax relief. This means:
- If your MediSave top-up is matched by the government, you cannot claim it for tax relief.
- Only non-matched voluntary contributions will count towards relief limits.
- This change is aimed at preventing double benefits — receiving both matching funds and tax relief for the same contribution.
💡 4. Why This Matters for Taxpayers
Many taxpayers in Singapore use CPF top-ups to reduce their taxable income while saving for retirement and healthcare. The change means you’ll need to be more strategic:
- Matched contributions give you an instant return via government funding.
- Non-matched contributions allow for tax relief benefits.
- You may need to balance between the two for optimal results.
📊 5. Example Scenarios
Let’s compare two taxpayers each making a S$1,000 top-up to MediSave:
| Scenario | Government Match | Tax Relief | Total Benefit |
|---|---|---|---|
| Matched Contribution | S$1,000 | No | S$1,000 immediate gain |
| Non-Matched Contribution | No | Up to S$220 (assuming 22% tax bracket) | Tax savings based on income |
📝 6. Strategies Before the Change
- Make eligible MediSave top-ups in 2024 to enjoy both matching and tax relief (if available).
- From 2025, decide whether to prioritise matching funds or tax savings.
- Consider topping up your Special Account instead for continued relief eligibility.
✅ Final Takeaway
The Matched MediSave Scheme remains a great way to boost healthcare savings with free matching from the government. However, from 2025 onwards, you’ll have to choose between matching benefits or tax relief for the same contribution. Early planning can help you get the best of both worlds.
